Answer:
$49,252
Explanation:
Calculation to the estimated warranty liability using the expected cash flow method.
Estimated warranty liability =[($20,000 x .4)+($30,000 x .6) x 0.95238]+ [($30,000 x .7)+($20,000x .3) x 0.90703]
Estimated warranty liability =[($8,000+$18,000)×0.95238]+[($21,000+$6,000)×0.90703
Estimated warranty liability =($26,000×0.95238)+($27,000×0.90703)
Estimated warranty liability =$24,762+$24,490
Estimated warranty liability =$49,252
Therefore the estimated warranty liability using the expected cash flow method is $49,252
